The Austin, Texas-based company said it now expects to earn about 20 cents a share, on revenue of $74.4 million. SigmaTel had earlier forecast earnings between 30 cents and 37 cents a share on revenue in a range of $73 million to $83 million.

In the regular session, the stock closed down 71 cents to $17.21. It lost another $2.22 to $14.99 in evening trading.

The company also cut its gross margin estimate to 51% from 54%.

During the year-ago period, SigmaTel earned 37 cents a share, on $48 million in revenue.

Analysts surveyed by Thomson First Call had forecast SigmaTel to earn 30 cents a share, on $79 million in sales.

In a printed statement, SigmaTel said "equipment issues" at its test and assembly plant, which caused a loss of production of its higher-end products, were the main source of blame for the earnings shortfall. The company said the problems kept it from shipping 1.3 million units during the quarter. Those products are now scheduled to ship in October.

SigmaTel is best-known for making chip technology used in the Apple
AAPL, -0.11%
iPod shuffle music player. The company's products are also used in products from Dell Inc.
DELL
and Sony Corp.
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